Circular No. 159/15/2021-GST
F.No. CBIC-20001/8/2021-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, dated the 20th September, 2021
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on doubts related to scope of “Intermediary”–reg
Representations have been received citing ambiguity caused in interpretation of the
scope of “Intermediary services” in the GST Law. The matter has been examined. In view
of the difficulties being faced by the trade and industry and to ensure uniformity in the
implementation of the provisions of the law across field formations, the Board, in exercise
of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017
(hereinafter referred to as “CGST Act”), hereby clarifies the issues in succeeding paragraphs.
2. Scope of Intermediary services
2.1 ‘Intermediary’ has been defined in the sub-section (13) of section 2 of the Integrated
Goods and Services Tax Act, 2017 (hereinafter referred to as “IGST” Act) as under–
“Intermediary means a broker, an agent or any other person, by whatever name called, who
arranges or facilitates the supply of goods or services or both, or securities, between two or
more persons, but does not include a person who supplies such goods or services or both or
securities on his own account.”
2.2 The concept of ‘intermediary’ was borrowed in GST from the Service Tax Regime. The
definition of ‘intermediary’ in the Service Tax law as given in Rule 2(f) of Place of Provision
of Services Rules, 2012 issued vide notification No. 28/2012-ST, dated 20-6-2012 was as
follows:
“intermediary” means a broker, an agent or any other person, by whatever name called, who
arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) or a supply of goods, between two or more persons, but does not include a person who provides the
main service or supplies the goods on his account;”
2.3 From the perusal of the definition of “intermediary” under IGST Act as well as under
Service Tax law, it is evident that there is broadly no change in the scope of intermediary
services in the GST regime vis-à-vis the Service Tax regime, except addition of supply of
securities in the definition of intermediary in the GST Law.
Download Full Circular…Circular No. 159_14_2021_GST